As real as it gets. Abby Lee Miller, who came to fame as the tough dance instructor on the Lifetime reality show Dance Moms, was indicted on charges of bankruptcy fraud on Wednesday, Oct. 14, according to the United States Attorney’s Office.
The outspoken reality star was slammed with a 20-count indictment that includes charges of “bankruptcy fraud, concealment of bankruptcy assets, and false bankruptcy declarations,” United States Attorney David J. Hickton announced.
Miller, 50, reportedly filed a petition to reorganize her dance studio in 2010, purposely hiding money she had made from TV deals, Masterclass studio sessions, and merchandise and apparel sales in order to defraud the bankruptcy court.
Among her alleged tactics to ensure she received the funds she needed: creating bank accounts to disperse and hide the income, telling others to conceal their income from the bankruptcy court, and failing to report or underreporting other business income.
According to the U.S. Attorney’s Office, Miller’s concealed income totals approximately $755,492.85.
“Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt resulting from any number of legitimate reasons, but allegations of fraud and abuse threaten the integrity of the bankruptcy process and the public’s trust in it,” Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Division said in a statement. “We take our responsibility to pursue allegations of bankruptcy faux seriously.”
If she is found guilty of the charges, the reality star could face five years in prison and a fine of $250,000 — for each count of the indictment.
